Why negative nominal rates may be the Fed’s next big move

This crisis has broken a lot of economic taboos, with central banks buying up assets and expanding their balance sheets in a desperate effort  to reflate a debt-laden private sector. The goal is to maintain economic growth, even at the risk of releveraging within the private sector to make up for a loss of private income-based demand. I think things can go a lot further.
For the time being, ideas like debt forgiveness and fostering increased savings rates to reduce private sector debt burdens a...


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